Difference between financial intelligence on millennials, gen x, and baby boomers

Authors

  • Njo Anastasia Universitas Kristen Petra
  • Oka Christian Setiadiwiria Universitas Kristen Petra
  • Yohanes Sondang Kunto Wageningen University & Research, School of Social Sciences

DOI:

https://doi.org/10.26740/bisma.v12n1.p15-28

Abstract

The financial management of each individual depends on his financial intelligent. This study aims to examine the differences between financial knowledge and financial behavior, which are a combination of financial intelligent in each generation, namely the millennials, Gen X, and baby boomers. The sample used consisted of 100 respondents in each generation, selected using purposive sampling technique. Data collection used questionnaires distributed by online and hardcopy, which is then processed to test the differences using the ANOVA test. The results of the analysis showed that there are significant differences in financial intelligence on millennials, Gen X, and baby boomers. However, there were no difference in financial intelligence between millennials and Gen X. This proves that differences in generations that have different growth periods will have different levels of financial knowledge, resulting in differences in financial behavior.

Keywords

Financial intelligence; financial knowledge; financial behavior; millennials; Gen X; baby boomers

Author Biographies

Njo Anastasia, Universitas Kristen Petra

Program Manajemen Keuangan

Oka Christian Setiadiwiria, Universitas Kristen Petra

Program Manajemen Keuangan

References

<p>Bashir, T., Arshad, A., Nazir, A., &amp; Afzal, N. (2013). Financial literacy and influence of psychosocial factors. <em>European Scientific Journal, 9</em>(28), 384-404.</p><p>Berman, K., Knight, J., &amp; Case, J. (2013). <em>Financial intelligence : a manager's guide to knowing what the numbers really mean.</em> Boston, Mass: Harvard Business Review Press.</p><p>Borodin, A., Smith, R., &amp; Bush, A. (2010). Summary brief: Does generation Ys value toward work, self, and individual responsibility influence their ethicality?, (pp. 112-113).</p><p>Chen, H., &amp; Volpe, R. (1998). An analysis of personal financial literacy among college students. <em>Financial Services Review, 7</em>(2), 107-128.</p><p>Dent, A. (2017, December 5). <em>The next generation: Millennials out-invest Gen X and Baby Boomers</em>. Retrieved from The Bonhill Network: https://www.growthbusiness.co.uk/millennials-invest-gen-x-2553142/</p><p>Grable, J., Park, J.-Y., &amp; Joo, S.-H. (2009). Explaining financial management behavior for Koreans living in the United States. <em>Journal of Consumer Affairs, 43</em>(1), 80-107. doi:https://doi.org/10.1111/j.1745-6606.2008.01128.x</p><p>Hawkins, D., &amp; Mothersbaugh, D. (2013). <em>Consumer behavior: Building marketing strategy</em> (12th ed.). New York: Mc Graw-Hill Irwin.</p><p>Hilgert, M., &amp; Hogarth, J. (2003, July). Household financial management: The connection between knowledge and behavior. <em>Federal Reserve Bulletin</em>, pp. 309-322.</p><p>Hira, T., &amp; Mugenda, O. (1999). The relationships between self-worth and financial beliefs, behavior, and satisfaction. <em>Family and Consumer Sciences Research Journal, 91</em>(4), 76-82.</p><p>Idris, F. H., Krishnan, S. D., &amp; Azmi, N. (2013). Relationship between financial literacy and financial distress among youths in Malaysia - an empirical study. <em>Malaysian Journal of Society and Space, 9</em>(4), 106-117.</p><p>Kiyosaki, R. T. (2008). <em>Increase your financial IQ: get smarter with your money.</em> New york: Business Plus.</p><p>Lusardi, A. (2008, June). Financial literacy: an essential tool for informed consumer choice? <em>NBER Working Paper</em>, 1-29. doi:10.3386/w14084</p><p>Nababan, D., &amp; Sadalia, I. (2012). <em>Analisis personal financial literacy dan financial behavior mahasiswa strata I Fakultas Ekonomi Universitas Sumatera Utara.</em> Retrieved from http://repository.usu.ac.id/handle/123456789/34557.</p><p>Robb, C., &amp; Woodyard, A. (2011). Financial knowledge and best practise behavior. <em>Journal of Financial Counseling and Planning, 22</em>(1), 60-70.</p><p>Ryder, N. (1965). The Cohort as a Concept in the Study of Social Change. <em>American Sociological Review, 30</em>, 843-861. doi:http://dx.doi.org/10.2307/2090964</p><p>Smith, D., Roebuck, D., &amp; Elhaddaoui, T. (2013). Cross-generational perspectives on work-life balance and its impact on womens opportunities for leadership in the workplace. <em>Advancing Women in Leadership, 33</em>, 52-62. Retrieved from http://advancingwomen.com/awl/awl_wordpress/</p><p>Sugiyono. (2017). <em>Metode penelitian bisnis: Pendekatan kuantitatif, kualitatif, kombinasi dan R&amp;D</em> (3rd ed.). Bandung: CV Alfabeta.</p><p>Xiao, J. J., Chen, C., &amp; Chen, F. (2013). Consumer financial capability and financial satisfaction. <em>Social Indicators Research, 113</em>(3), 415-432. doi:10.1007/s11205-013-0414-8</p><p> </p>

Downloads

Additional Files

Published

2019-10-17

How to Cite

Anastasia, N., Setiadiwiria, O. C., & Kunto, Y. S. (2019). Difference between financial intelligence on millennials, gen x, and baby boomers. BISMA (Bisnis Dan Manajemen), 12(1), 15–28. https://doi.org/10.26740/bisma.v12n1.p15-28

Issue

Vol. 12 No. 1 (2019)

Section

Articles

License

Copyright Notice.

The copyright of the received article once accepted for publication shall be assigned to the journal as the publisher of the journal. The intended copyright includes the right to publish the article in various forms (including reprints). The journal maintains the publishing rights to the published articles.

 
Abstract views: 951 , PDF Downloads: 613 , PDF Downloads: 0